The Arlington County Board today unanimously elected Christian Dorsey its 2019 Chair. Libby Garvey was named vice chair.

Arlington County Board Chair Christian Dorsey

Dorsey, elected to the Board in 2015, served as vice chair in 2018. He represents Northern Virginia as a principal director on the board of the Washington Metropolitan Area Transit Authority, and represents Arlington County on other regional bodies including the Board of Directors of the Metropolitan Washington Council of Governments. Read Christian Dorsey’s biography.

Focus on equity

After a sobering look at the County’s near-term budget challenges, Dorsey called for a focus on equity in County policies, both to “repair the damage that inattention to equity has already produced,” and to ensure that going forward, County policies address disparities in health and wellness outcomes, educational achievement and “many indicators of one’s ability to lead a secure and fulfilling life.”

The County must collect and analyze data “so that broad successes don’t mask real challenges people face,” Dorsey said. County government must “recognize and report on who benefits from and who is burdened by the actions of government, including budgets; land use decisions; appropriations; legislation and civic engagement. “

Saying education and dialogue is needed to repair damage already done in the community, Dorsey promised to support “to the greatest possible extent,” Virginia Humanities’ Changing the Narrative program, supporting educational and dialogue opportunities “to understand historical and current inequities in our community.”

Warning on Fiscal Year 2020 Budget

Amazon’s decision to expand its headquarters into Arlington – with a planned $2.5 billion investment and creation of 25,000 jobs over the next decade — “is a significant catalyst toward our emerging from austerity budgets,” Dorsey said. But for Amazon “to serve as a springboard for more opportunities for all Arlingtonians,” he said, “we must expertly manage its growth.” Changes that Amazon brings to the built environment must “reflect the vision of our existing plans,” Dorsey said, and the County must “prevent the displacement of residents and businesses, or the diminishment of the quality of life for all who already call Arlington home.”

Amazon’s arrival will not immediately address the challenges posed by the ongoing high office vacancy rate that has weakened the County’s tax base, increased Metro funding needs and increased local funding obligations stemming from the state’s welcome decision to expand Medicaid coverage, Dorsey cautioned. In FY 2020, he noted, the County faces a combined County-Arlington Public Schools budget gap for Fiscal Year 2020 of as much as $70 million.

Services costs exceed revenues

The County’s recent resident satisfaction survey produced high marks for County services, but today “we are in the unfortunate position of having (costs of services) significantly exceed our revenues,” Dorsey said. “We need our partners at APS to find significant savings, and we will still be left with needing to either fundamentally reduce the services that Arlingtonians expect and value, or raise revenues through a property tax increase…just to deliver the same levels of service,” Dorsey said. Read Christian Dorsey’s Jan. 2 remarks.

The County Manager will present his proposed FY 2020 Budget to the County Board in February. The Board will then launch an extensive public review process, culminating in the Board adopting the budget at its April 2019 meeting. The FY 2020 Fiscal Year begins on July 1, 2019.

Vice Chair Libby Garvey

Libby Garvey, elected to the Board in March 2012, was named vice chair by her colleagues on the Board. Garvey previously has served a term as County Board Chair. She serves on the Northern Virginia Regional Commission, Northern Virginia Transportation Commission, Metropolitan Region Council of Governments and other regional bodies.

“I believe we need to figure out together, as a community, what we want Arlington’s future to be,” Garvey said, noting that “everyone says they want to preserve what they love about Arlington, but for some people that means a quiet, tree-lined street with single family homes, and for others it means a bustling urban landscape with bikes, scooters, restaurants, food trucks, and lots of people moving around pretty much 24/7. For everyone, it means affordability.”

Garvey said her priorities include getting through “some tough budget years” by focusing on efficiencies and priorities “in a way I don’t remember us doing.” She said she looks forward to continuing to provide “smaller, more intimate settings for discussions of broader challenges and potential solutions, and to improving civic dialogue and general civility in community discussions. Read Libby Garvey’s Jan. 2 remarks.

Board Member Katie Cristol

Katie Cristol called for revising the County’s zoning ordinance to “allow different, diverse and more affordable home types throughout the County, not just in our commercial areas.” Amazon’s impending arrival “has focused our community energy on protecting our middle class from being priced out permanently, Cristol said. “We can’t squander the opportunity to tackle this hard and important work in the year ahead.”

Because the region has not grown its housing supply to match its economy in recent years, Cristol said, “we’re all feeling the consequences: an affordable housing crisis for our middle class; displacement of our working class and low-income residents.” Arlington “may be only one jurisdiction in our big region, but I know we can be leaders in establishing a better way forward.”

Cristol said she also is looking forward to the Board acting on zoning ordinance and childcare code amendments in 2019 to increase the amount of quality, affordable childcare available in Arlington.

Board Member Erik Gutshall

Noting that “2019 begins for Arlington with both awesome opportunity and daunting challenges,” as it readies for Amazon’s arrival and tackles a difficult budget for FY 2020, Erik Gutshall said that whether the year will realize the County’s “wildest dreams,” or “our worst fears,” will depend on “the choices we make, and the leadership this Board provides this coming year.”

Arlington has spent decades “preparing for Amazon’s arrival,” through long-range planning efforts and investment infrastructure, Gutshall said, but he understands why “some see Amazon primarily exacerbating our worst fears,” as they wonder what its impact may be on crowded schools, open space, regional transportation infrastructure and affordable housing.

Gutshall cited the need for a multi-year visioning and planning effort to develop a long-range comprehensive schools and community facilities plan, modernizing the County’s zoning “to allow market-driven housing forms for the middle class,” and updating the Community Energy Plan as his priorities in 2019. He proposed that the County join the Green New Deal movement to transform the economy “to tackle the twin crises of inequality and climate change.” Read Erik Gutshall’s Jan. 2 remarks.

Board Member Matt de Ferranti

Matt de Ferranti, the newest member of the Board, said he will apply four standards to his consideration of an agreement with Amazon: that it provide a significant net benefit to our whole community; that an agreement further the County’s goals with respect to housing, transportation and schools; that small businesses are fairly considered as we implement an agreement; and that the County conduct a full, fair, and transparent process for considering an agreement.

de Ferranti also identified his priorities for 2019, which include bringing down the 19 percent office vacancy rate; providing the funding to build the schools to educate every child well; addressing housing affordability via creativity and relentlessness on affordable homeownership and rental units; putting the County back in a regional leadership role on climate change, renewable energy and our environment, and working to end child hunger in Arlington. Read Matt deFerranti’s Jan. 2 remarks.

Following the Organizational Meeting, the Board joined the Arlington County Civic Federation at its General Membership meeting, held in the County Board Room. Board members fielded questions from Civic Federation members on a range of issues.

]]>Arlington County Board November Recessed Meeting Actionshttps://newsroom.arlingtonva.us/release/arlington-county-board-november-recessed-meeting-actions/
Wed, 28 Nov 2018 04:10:15 +0000https://newsroom.arlingtonva.us/?post_type=news_release&p=19693The Arlington County Board today approved Virginia Hospital Center’s expansion plans, a $3.025 million loan to renovate senior housing in Ballston, and guidance that will set the parameters for the County Manager’s proposed Fiscal Year 2020 Budget at its November Recessed Meeting.

Tax hikes, service cuts, staff reductions to be considered to close budget gap

The Arlington County Board today directed the County Manager to provide options for tax increases and service and personnel cuts, if necessary to prepare a balanced Proposed Fiscal Year 2020 Budget.

“We face the reality of a $20-$35 million gap between anticipated expenditures and anticipated revenues,” County Board Chair Katie Cristol said. “The Board is committed to meeting increased funding needs for Metro, Medicaid expansion and Schools, and to maintaining our funding level for affordable housing, while remaining responsible and responsive to the impacts any tax rate increase will have on Arlington residents. In the coming months, this Board will work closely with the Manager and the community to stay true to our values and maintain core services while finding the right balance, if necessary, of service cuts and revenue increases.”

The Board voted unanimously to approve the guidance. The overarching guidance asked the Manager to “provide for long-term financial sustainability; preserve the County’s triple-AAA bond rating; and fully fund all debt, lease and other contractual commitments,” in his proposed budget.

The Board directed the Manager to provide options for program and personnel reductions or eliminations and a possible tax rate increase, if he cannot present a balanced budget within the existing tax rate. If the Manager proposes a tax rate increase, the Board said, it should be to:

Meet new legislative requirements, including Medicaid expansion and WMATA funding.

Continue with the compensation and staffing adjustments for public safety and general employees that the Board adopted in April 2018;

Maintain existing infrastructure by providing funds to maintain the state of good repair as outline in the adopted Capital Improvement Plan; and

Provide operating funding for new Arlington Public Schools facilities opening in FY 2020.

The Board also asked that the Manager propose long-term efficiencies and improvements in service delivery.

To read the guidance, visit the County website. Scroll to Item No. 31 on the agenda for the Tuesday, Nov. 27, 2018 Recessed County Board Meeting.

Maintaining affordable housing funding

Funding for the Affordable Housing Investment Fund, the County’s primary source for funding the creation and preservation of affordable housing, should be maintained at current levels, according to the Board’s guidance. Both one-time and ongoing funds should be used, with an effort to shift more of that funding into the ongoing base budget.

Funding for APS according to revenue allocation agreement

The Board directed the Manager to provide funding consistent with the Revenue Sharing Principles between the County and Arlington Public Schools, and to apply the County/School revenue allocation reflected in the FY 2019 budget (53.4 percent County-46.6 percent Schools). Most of APS’s funding comes from revenue sharing with the County.

Manager to present proposed budget to Board in February

Working with County departments and the community, and within the Board’s guidelines, the Manager will build a proposed budget to be presented to the Board in February. The Board will review the budget through a series of work sessions, consider comments from the public and hold public hearings in March and April. The Board will adopt the budget in April. Fiscal Year 2020 year will begin on July 1, 2019.

Fiscal Year 2018 close-out

The Board also voted unanimously to close-out Fiscal Year 2018’s budget and to allocate $21.9 million in funds not needed for reserves, restricted funding, allocations already approved by Board action, or for continuing projects that straddle fiscal years.

Excluding funds required for reserves, restricted funding, allocations already approved by Board action, or for continuing projects that straddle fiscal years, the balance was $21.9 million in discretionary funds. The $21.9 million is 2.6 percent of the revised FY 2018 County General Fund budget, excluding schools. Adopting the recommendations of the County Manager, allocation of available funds was made to three areas:

$16.5 million set aside for FY 2020 budget deliberations.

$6.4 million to increase the General Fund Operating Reserve from 5.0 percent to 5.5 percent, a critical step in ensuring the County’s triple-AAA rating.

$2.0 million to an operating contingent to respond to needs not budgeted during the current fiscal year.

Board Member John Vihstadt praised the action, noting that the $16.5 million set aside for the FY 2020 budget deliberations, (approximately 75 percent of the total surplus), would be an invaluable source of one-time funds during next year’s challenging budget deliberations.

To read the staff report and view the staff’s presentation on the FY 2018 close-out, scroll down to Item No. 30 on the Agenda for the Tuesday, Nov. 27, 2018 Recessed County Board Meeting.

About the budget

Each year, Arlington County adopts a balanced operating budget that provides a blueprint for spending on County services and administration for the coming fiscal year, which begins July 1. Budget priorities are set by the County Manager and the County Board, through engagement with the Arlington community.

Arlington’s sound financial management practices have earned the County the coveted Triple-AAA rating from bond agencies for the past 18 years. By maintaining the highest possible bond rating, Arlington County saves taxpayers millions of dollars by ensuring it receives the lowest possible interest rate on the debt it incurs to finance public infrastructure and other projects.

In April 2018, the County Board adopted a $1.276 billion balanced budget with no increase in the real estate tax rate. Arlington’s tax rate, at $1.006 per $100 of assessed value (including the stormwater tax), is one of the lowest in the region.

The Arlington County Board has voted to eliminate the County’s 1967 requirement to display a vehicle decal on front windshields. License plate reading technology will be used to enforce vehicle registration and payment of vehicle personal property taxes.

“This is truly the end of an era for Arlington,” County Board Chair Katie Cristol said. “The decal is going the way of the horse-and-buggy. We welcome this technology upgrade that means Arlingtonians will no longer have to affix a county license tag to their windshields, and thank the hundreds of Arlington high school artists who for years participated in the decal design competition.”

The Board voted unanimously at its Tuesday, Sept. 25, 2018 Recessed County Board Meeting to eliminate the decal.

Final Arlington County Decal.

For decades, the County has required a decal to be displayed to help the Commissioner of Revenue ensure that vehicle owners properly registered their vehicles. The license plate reader technology that the Commissioner is adopting will make enforcement more efficient and effective. Jurisdictions across Virginia have been eliminating their decals, and today, only 21 out of 323 localities still use them. Arlington vehicle owners will need to display their yellow 2018-19 decals through July 1, 2019. After that, no decal will be required.

Although the Arlington County Treasurer is losing an enforcement tool with the decal’s elimination, with the ability to impose liens, garnishments, and other collection methods, she is confident that Arlington’s low tax delinquency rate (0.187%) will not be compromised. The change also means that the County Treasurer will no longer sponsor the decal design contest that for years has produced the County’s decal from the photos and artwork designed by Arlington County high school students.

“The decal competition was a great collaboration between art, teens, and local government, and I am sorry to see it end,” Arlington County Treasurer Carla de la Pava said.

The County’s motor vehicle license fee, which generates $5 million annually, will not be eliminated.

Tourism revenue for Arlington reached a record $3.3 billion in 2017, a 4.5 percent increase over 2016, according to the U.S. Travel Association. Arlington has led Virginia counties in visitor spending since 2009. Tourism generated nearly $92 million in local tax receipts, benefiting County programs and services, as well as state tax receipts of $123 million. Local tourism-supported jobs totaled 26,321, nearly 400 more than in 2016.

“Tourism is an important revenue generator for the County,” said Arlington County Board Chair Katie Cristol. “Investing in tourism marketing helps Arlington compete successfully with other destinations, bringing important new revenues to improve our community.”

“Arlington’s thriving tourism economy is a credit to strong and committed partnerships throughout our hospitality community and local government,” said Emily Cassell, director of the Arlington Convention and Visitors Service. “From the Arlington Chamber’s unwavering support of tourism-promotion funding, to ongoing collaboration among our hotels, business improvement districts (BIDs), neighborhood partnerships and businesses, Arlington has a solid foundation for continued growth.”

Tourism development spurs industry growth statewide

Tourism in Virginia generated $25 billion in travel spending in 2017, supported 232,000 jobs, and resulted in $1.73 billion in state and local taxes. The increase is largely attributed to Virginia’s tourism development all around the state, including new hotels, restaurants, agritourism, craft breweries, wineries, distilleries, cideries, meeting and convention venues, attractions and more.

“Virginia’s tourism industry is an important diversifier for our economy as it continues to grow and flourish in multiple regions of our Commonwealth,” said Governor Northam. “Visitors are spending millions of dollars a day, injecting critical funds back into our community coffers and helping to make Virginia the best place to live, work, and raise a family.” See a video on Virginia’s record-breaking year.

The Virginia Tourism Corporation receives its annual economic impact data from the U.S. Travel Association. The information is based on domestic visitor spending (travelers from within the United States) from per-person trips taken 50 miles or more away from home. Detailed economic impact data by locality is available on www.vatc.org under Research.

About the Arlington Convention and Visitors Service

A division within Arlington Economic Development, the Arlington Convention and Visitors Service (ACVS) is Arlington County’s official destination marketing organization. Funded primarily through a guest-paid, 1/4-cent tax on hotel rooms, ACVS promotes Arlington as the perfect combination of convenience, value and local flavor for travelers visiting the Washington, D.C., region. For more information on Arlington tourism, visit www.stayarlington.com.

The Arlington County Board today voted unanimously to approve changes to the County Real Estate Tax Relief for the Elderly program that were recommended by the County Manager and developed by a working group. The proposed changes would extend the application timeline and change some eligibility criteria for the program, among other adjustments.

“Although in recent days there have been those in the community who advocated for the Board to allow deferrals of property taxes only, rather than exemptions, such a change would have made Arlington unique among jurisdictions in this region. For that reason, and because real estate tax deferrals are fraught with problems for people with mortgages, the Board did not choose that option,” County Board Katie Cristol said.

“This vote was an endorsement of the both the substance of the proposed changes, and of the extensive, thoughtful process behind them. The working group, which brought together divergent points of view, data and personal experiences, worked diligently for more than a year to produce thoughtful recommendations on how to more effectively reach those seniors who really need this program.”

The changes include extending the application deadline from August 15 to November 15; allowing for the provision of retroactive real estate tax relief of up to two years under extreme circumstances; increasing the program’s exemption asset limit from $340,000 to $400,000; adjusting the asset limits annually, based on changes in the Consumer Price Index; revising the method for calculating applicants’ assets, and more.

The adopted eligibility changes will decrease the tax revenue that the County will forego by an estimated net of $153,898. The County will pay about $3,200 in one-time administrative expenses to reprogram existing systems in the Department of Human Services and the Treasurer’s Office. The effect of allowing applicants to adjust their assets using various deductions is not known at this time. The Board did not adopt options it had included in its June advertisement of today’s public hearing, which would have limited program eligibility for properties worth more than $1 million.

Most of the changes will take effect Jan. 1, 2019. to read the staff report and presentation on this item, visit the County website. Scroll to Item No. 55 on the agenda for the Saturday, July 14, 2018 Regular County Board Meeting.

About the Real Estate Tax Relief Working Group

The proposed changes stem from the work of the Real Estate Tax Relief Working Group, appointed by the County Manager in 2016, at the direction of the Board. The working group was charged with studying the tax relief program and developing recommendations for the Fiscal Year 2018 budget process. Members included representatives from the County’s commissions on aging, disability, fiscal affairs and housing, as well as a member-at-large, and tax relief program participants. The working group presented its final report and recommendations in April, 2017.

About Real Estate Tax Relief for the elderly, permanently disabled

Virginia localities are authorized to provide Real Estate Tax Relief to homeowners aged 65 or over, as well as to permanently disabled homeowners. Arlington’s program is overseen by the Department of Human Services. In 2015, 940 Arlington households were approved for tax relief under the program, resulting in $4.2 million in uncollected revenue.

The 2015 Affordable Housing Master Plan found that many low-income senior households on fixed incomes face financial stress related to increasing condominium fees and real estate taxes. The plan’s implementation framework recommended that the goals and guidelines of the tax relief program be reviewed, and that income levels, asset levels and criteria for exemptions and deferrals be considered for redefinition.

]]>CORRECTION: Public Hearing Set on Proposed Changes to Real Estate Tax Relief for Elderlyhttps://newsroom.arlingtonva.us/release/correction-public-hearing-set-on-proposed-changes-to-real-estate-tax-relief-for-elderly/
Wed, 20 Jun 2018 10:49:23 +0000https://newsroom.arlingtonva.us/?post_type=news_release&p=17251Reporters who cover Arlington: In the release issued by Arlington County on Tuesday, June 19, 2018: Public Hearing Set on Proposed Changes to Real Estate Tax Relief for Elderly, we inadvertently left out the Board vote on the Public Hearing. The Board voted unanimously to hear the proposed changes to the County’s Real Estate Tax Relief for the Elderly program at its July Meeting. We regret the error.
]]>Public Hearing Set on Proposed Changes to Real Estate Tax Relief for Elderlyhttps://newsroom.arlingtonva.us/release/public-hearings-set-on-proposed-changes-to-real-estate-tax-relief-for-elderly/
Wed, 20 Jun 2018 01:17:00 +0000https://newsroom.arlingtonva.us/?post_type=news_release&p=17229(Note: This was corrected 06/20/2018 to add the Board vote)

Board will hold public hearing, vote in July

Proposed changes based on Working Group recommendations

Would extend application deadline, increase exemption asset limit and more

The Arlington County Board today voted unanimously to hold a public hearing at its July 2018 Meeting on proposed changes to the County Real Estate Tax Relief for the Elderly program. The proposed changes would extend the application timeline and change some eligibility criteria for the program, among other adjustments.

“A lot of thought and effort has gone into this review of the program, to ensure it is achieving the goal of helping low-income senior households on fixed incomes, and persons who are permanently disabled, stay in their homes,” Arlington County Board Chair Katie Cristol said. “We have heard from many community members, advocates and current program participants, and look forward to hearing from more at the public hearing in July.”

The proposed changes include extending the application deadline from August 15 to November 15; allowing for the provision of retroactive real estate tax relief of up to two years under extreme circumstances; increasing the program’s exemption asset limit from $340,000 to $400,000; adjusting the asset limits annually, based on changes in the Consumer Price Index; revising the method for calculating applicants’ assets, and more. The Board also included options to potentially limit program eligibility for properties worth more than $1 million.

If the proposed changes are adopted, the amount of tax revenue that the County would forego would decrease by an estimated net of $153,898. The County would pay about $3,200 in one-time administrative expenses to reprogram existing systems in the Department of Human Services and the Treasurer’s Office. The effect of allowing applicants to adjust their assets using various deductions is not known at this time.

Most of the proposed changes, if adopted in July by the Board, would take effect Jan. 1, 2019.

About the Real Estate Tax Relief Working Group

The proposed changes stem from the work of the Real Estate Tax Relief Working Group, appointed by the County Manager in 2016, at the direction of the Board. The working group was charged with studying the tax relief program and developing recommendations for the Fiscal Year 2018 budget process. Members included representatives from the County’s commissions on aging, disability, fiscal affairs and housing, as well as a member-at-large, and tax relief program participants. The working group presented its final report and recommendations in April, 2017.

About Real Estate Tax Relief for the elderly, permanently disabled

Virginia localities are authorized to provide Real Estate Tax Relief to homeowners aged 65 or over, as well as to permanently disabled homeowners. Arlington’s program is overseen by the Department of Human Services. In 2015, 940 Arlington households were approved for tax relief under the program, resulting in $4.2 million in uncollected revenue.

The 2015 Affordable Housing Master Plan found that many low-income senior households on fixed incomes face financial stress related to increasing condominium fees and real estate taxes. The plan’s implementation framework recommended that the goals and guidelines of the tax relief program be reviewed, and that income levels, asset levels and criteria for exemptions and deferrals be considered for redefinition.

]]>Media Alert: Arlington County Board asks Governor to Veto Country Club Billhttps://newsroom.arlingtonva.us/release/media-alert-arlington-county-board-asks-governor-to-veto-country-club-bill/
Tue, 27 Mar 2018 18:27:44 +0000https://newsroom.arlingtonva.us/?post_type=news_release&p=15547Reporters Who Cover Arlington: The Arlington County Board has asked Virginia Governor Ralph Northam to veto HB1204, the country club bill adopted by the General Assembly that mandates the open space assessment of golf course properties in the County.

In a letter signed by all five Board members, the Board noted that the bill, in an effort to provide preferential tax treatment to two golf clubs in Arlington, conflicts with the Constitution and Code of Virginia, sets a dangerous precedent for real property tax assessment decisions to be made in Richmond instead of at the local level, and undermines state laws related to the preservation of open space.

“Enacting this legislation is a dangerous intrusion into the local real estate assessment process which has traditionally been the sole province of local decision making, and sets a dangerous precedent of the General Assembly becoming the venue for what is at its core a local issue,” the Board members wrote.

The letter further notes that the tax relief the bill offers solely to two Arlington golf courses “has a substantial budgetary impact on Arlington County at the expense of schools, public safety, public services, public health and transportation.” The bill would result in a decrease of County tax revenue by $1.43 million annually, necessitating “significant potential reductions in the areas of student education, public safety, transportation, community health, and social services,” the Board members wrote.

The Arlington County Board today took action on nearly two dozen items at its February Regular County Board Meeting. Highlights included the Board approving the advertisement of the property tax rate for Calendar Year 2018, and approving a contract for a Columbia Pike bike boulevard project. By law, the tax rate the Board adopts in April, when it adopts the Fiscal Year 2019 Budget, cannot be higher than the advertised rate. Here are some of the highlights.

The County Board will continue its February meeting at its Recessed Meeting on Tuesday, February 27, 2018. The afternoon session of the Recessed Meeting will begin at 3 p.m. with County Board Business and Reports, and resume at 6:30 p.m. Two public hearings are scheduled for the Recessed Meeting. The public hearings will begin no earlier than 6:45 p.m. View the agenda and read the staff reports on the County website. County Board Meetings can be viewed live on the County website. You can also watch them live on the County’s cable television station, ATV, broadcast on Verizon FiOS Channels 39 and 40x and Comcast Channels 25 and 74. For information on speaking at a Board Meeting, visit the County website.